Business owners need to assess the impact hosted services have on their IT infrastructure in terms of total cost of ownership, it has been suggested. Dr Jonathan Reichental, an IT expert, called on companies to determine the cost of existing IT solutions, and how this will be affected by embracing cloud computing.
Whether an IT service should remain internal or be hosted in the cloud requires a level of cost accounting which is seldom applied to the cost of running a technology service. Factors such as the true costs of labour, utilities, backups and disaster recovery should be taken into consideration and this puzzle requires the chief information officer to understand and allocate the appropriate costs for each service being considered for the cloud," he added. He also reminded businesses to include opportunity costs in any calculations they make.
It was also suggested that potential business IT users can learn from the experiences of their counterparts when moving to a managed hosting model. “This is an opportunity for PAs to share best practice with APA for onward transmission to their peers,” aid Gareth Osborne.
APA
Whether an IT service should remain internal or be hosted in the cloud requires a level of cost accounting which is seldom applied to the cost of running a technology service. Factors such as the true costs of labour, utilities, backups and disaster recovery should be taken into consideration and this puzzle requires the chief information officer to understand and allocate the appropriate costs for each service being considered for the cloud," he added. He also reminded businesses to include opportunity costs in any calculations they make.
It was also suggested that potential business IT users can learn from the experiences of their counterparts when moving to a managed hosting model. “This is an opportunity for PAs to share best practice with APA for onward transmission to their peers,” aid Gareth Osborne.
APA
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